TYPICAL FACTORY LAYOUT vs THE TOYOTA APPROACH

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1 TYPICAL FACTORY LAYOUT vs WHAT IS THE TYPICAL FACTORY LAYOUT IN MASS MANUFACTURING APPROACH? WHAT IS THE APPROACH TO FACTORY LAYOUT IN TOYOTA? RACHEL VALERIE 5/1/16 LEAN INTEGRATING DESIGN AND PRODUCTION 1

2 INTRODUCTION Various factory process layouts. Basic layouts for manufacturing facilities: Static or Fixed position build Product based Layouts Process based Layouts The typical factory layout in mass manufacturing approach. The approach to factory layout in Toyota. Comparison between the two factory layouts. Conclusion LEAN INTEGRATING DESIGN AND PRODUCTION 2

3 BASIC LAYOUT TYPES Parts and resources come together and are assembled at one place This method is used to create large and complex products such as airplanes and ships. Source: STATIC OR FIXED POSITION PRODUCTION LEAN INTEGRATING DESIGN AND PRODUCTION 3

4 BASIC LAYOUT TYPES Raw Materials 2 Components 4 Components Subassemblies Raw Materials Components Subassemblies Assemblies Finished Products Purchased Components & Subassemblies 6 Assemblies Product or Material Flow PRODUCT-FOCUSED PRODUCTION Production Operations LEAN INTEGRATING DESIGN AND PRODUCTION Source: Gaither & Frazier,

5 BASIC LAYOUT TYPES Receiving & Raw Materials Storage Foundry Rough Machine Fabrication Painting Packaging and Shipping Job X Job Y Shear & Punch Finish Machine Deburr Assembly Product or Material Flow LEAN INTEGRATING DESIGN AND PRODUCTION PROCESS - FOCUSED PRODUCTION Source: Gaither & Frazier, 1999 Production Operations 5

6 TYPICAL FACTORY LAYOUT Traditionally, factory layouts focus on process based departments. Work is done in batches and organized through departments. LEAN INTEGRATING DESIGN AND PRODUCTION (Weber, 2012) 6

7 TYPICAL FACTORY LAYOUT TRADITIONAL FACTORY Each silo is as efficient as possible Traditional layouts assume that more quantity is the key output. Batch-and-queue system. Allows inventory to build up and wait. Theory is reduced change over and transport cost. Product is pushed through to the customer Traditional layouts usually optimize for a static design Having the biggest facility or the fastest and largest piece of equipment is considered efficient. Use of complex and expensive material handling systems installed to automate the transportation waste. LEAN INTEGRATING DESIGN AND PRODUCTION 7

8 TYPICAL TOYOTA LAYOUT Toyota wanted to match the production output of Ford. On analysis their constraints demanded a different process that would work in harmony with; Smaller Space Smaller Cash Flow Greater model variety Smaller Client base By genchi genbutsu they found waste and defects running through the Ford system, they developed one-piece flow. Lean manufacturing is about making more and more, with less and less LEAN INTEGRATING DESIGN AND PRODUCTION 8

9 TYPICAL TOYOTA LAYOUT One-piece-flow focuses on the most efficient flow for the product. The materials like people do not want to wait around for activity, the system keeps them flowing. Defects are found quickly. Movement is reduced through intelligent flow management. LEAN INTEGRATING DESIGN AND PRODUCTION 9

10 TYPICAL TOYOTA LAYOUT Workstations are flexible, they can be altered to change their role/output and moved to create a different sequence. Stations are flexible to changing workloads. More or less stations can be created in the process. Standardisation of parts throughout car models reduces this need. LEAN INTEGRATING DESIGN AND PRODUCTION 10

11 TYPICAL TOYOTA LAYOUT LAYOUT AT TOYOTA Processes are balanced with each other and ultimately to the demand rate or Takt time. Lean layouts focus on reducing waste and increasing value in the process One-piece-flow attempts to have no inventory and reduce hidden defects Driven by customer demand. Pulled through the system Standardization is fundamental to flexibility Workstations are flexible to work with the demands of the product and customer needs Employees are motivated to problem solve and inspect throughout the process. Machines/the process can be stopped to solve the solution LEAN INTEGRATING DESIGN AND PRODUCTION 11

12 TYPICAL TOYOTA LAYOUT LEAN INTEGRATING DESIGN AND PRODUCTION 12

13 TYPICAL TOYOTA LAYOUT LEAN INTEGRATING DESIGN AND PRODUCTION 1

14 CONCLUSION TRADITIONAL FACTORY LAYOUT AT TOYOTA Departments are organized by function; Each department with separate supervisor and specialized workers. Forklift trucks are needed to move inventory between departments. Factory is organized into cells with various machines in sequential order. Fewer workers, supervisors and forklift trucks. Much less work in process and no finished goods in inventory. LEAN INTEGRATING DESIGN AND PRODUCTION 14

15 CONCLUSION TRADITIONAL FACTORY LAYOUT AT TOYOTA Typical batch-and-queue system One Piece Flow LEAN INTEGRATING DESIGN AND PRODUCTION 15

16 CONCLUSION LEAN INTEGRATING DESIGN AND PRODUCTION 1

17 REFERENCES Flow Motion. (2015, 9 July). Which is more productive Batch or One-piece-flow? [weblog]. Retrieved from Gaither, N., & Frazier, Gregory. (1999). Production and operations management (8th ed.). Cincinnati, Ohio : London: South-Western ; International Thomson. Toyota. (2016). Children s website. Retrieved 11 th April, 2016, from Weber, A., (2016). Lean Plant Layout. Retrieved 04 th April, 2016, from, Williams, D. (1994). Manufacturing systems : An introduction to the technologies (2nd ed.). London: Chapman and Hall. Zheng, E. (2013, 31 March). Management Information Systems. [weblog]. Retrieved from LEAN INTEGRATING DESIGN AND PRODUCTION 17

18 QUESTIONS? LEAN INTEGRATING DESIGN AND PRODUCTION 18

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